The company said it considers itself entitled to receive a breakup fee that was previously approved by the bankruptcy court.

The appeal came as a committee of A123 creditors prepared to depose Johnson Controls concerning its activities in the bankruptcy case and sale of the Massachusetts supplier of advanced batteries for the automotive industry and military uses.

Last week, the bankruptcy court held Johnson Controls’ breakup fee and expense reimbursement in escrow. Johnson Controls was the lead bidder for A123 but Wanxiang outbid Johnson Controls by about $5 million, with a bid of more than $256 million.

A lawyer for the creditors committee last week said Johnson Controls was actively lobbying members of Congress in a bid to thwart Wanxiang’s purchase.

That is what the Glendale-based company is now appealing, noting that the breakup fee and expense reimbursement were previously approved by the bankruptcy court.

Johnson Controls said it has an active government relations function “that involves regular interaction with policy makers and agencies on the full range of issues relevant to the company,” adding that its government relations activities comply with government regulations and “are consistent with First Amendment Rights of free speech.”

The sale of the stimulus-funded battery supplier to a Chinese firm could still be scrapped, because it awaits approval by the U.S. Committee on Foreign Investment in the United States. That panel is reviewing the deal because of the potential threat to national security that the loss of A123’s technology could pose.

U.S. approval was a challenge for the A123 sale to Wanxiang dating back to Wanxiang’s attempt to buy the company earlier this year, before A123 sought bankruptcy protection from its creditors.

The company says the core technology used by A123 – whether in its automotive, power grid or military businesses -- “represent a risk to the sale which cannot be dismissed until resolved by the government review process.”

A123 and Wanxiang have expressed confidence the deal will be approved because the deal was structured to avoid Wanxiang receiving A123's military contracts.

"Should the sale of A123 Systems to Wanxiang not be completed for any reason, Johnson Controls remains open to considering future opportunities to acquire relevant portions of A123's assets, keeping this critically important technology in the United States, preserving jobs and furthering the purpose of the American Reinvestment and Recovery Act," said Alex Molinaroli, Johnson Controls power solutions president, in a statement.

Johnson Controls and A123 were both recipients of stimulus funding that the U.S. Energy Department targeted to toward helping the U.S. auto industry bring advanced battery technology to market faster.

About Thomas Content

Thomas Content covers energy, clean technology and sustainable business. A series he co-wrote on energy and climate change won top honors in 2008 from the National Press Foundation.

Energy Business News

EnSync Energy Systems has shipped a utility-scale energy storage system to South Korea, the Menomonee Falls company said.

The 500-kilowatt-hour system incorporates enough battery power for four or more hours of discharge, using EnSync’s zinc bromide flow batteries as well as power electronics and converters.

Formerly known as ZBB Energy, EnSync is focused on smaller energy storage systems for commercial buildings such as projects it's built in Hawaii in recent years. But it's also been working on larger energy storage systems.